Modivcare Q4 2024 Earnings Report
Key Takeaways
Modivcare's Q4 2024 revenue remained flat at $702.8 million. The company reported a net loss of $23.5 million, significantly higher than the $5.3 million loss in Q4 2023, primarily due to increased service expenses and interest costs. Adjusted EBITDA declined 20.0% year-over-year to $40.4 million, reflecting weaker gross margins. Despite these challenges, the company generated $30.0 million in operating cash flow and secured a $75.0 million incremental term loan to support liquidity.
Revenue remained flat year-over-year at $702.8 million.
Net loss widened to $23.5 million due to higher service costs and interest expenses.
Adjusted EBITDA fell 20.0% to $40.4 million as gross profit declined.
Company secured a $75.0 million term loan to enhance liquidity.
Modivcare
Modivcare
Forward Guidance
Modivcare expects stabilization in utilization trends and working capital improvements in 2025, with a focus on cost management and operational efficiency.
Positive Outlook
- Service revenue expected to stabilize in 2025 as utilization levels normalize.
- Company secured a $75.0 million term loan to support liquidity.
- Working capital expected to improve with contract structure transitions.
- Continued growth in the PCS segment, with a 3.0% revenue increase in Q4.
- Operational efficiency initiatives to improve long-term profitability.
Challenges Ahead
- Net loss widened significantly due to higher service and interest expenses.
- Adjusted EBITDA declined 20.0%, reflecting margin pressure.
- Gross profit declined across all segments due to rising service costs.
- NEMT revenue fell 0.8% year-over-year, reflecting contract churn.
- Challenges in reimbursement rates and Medicaid redetermination.